CCC Intelligent Solutions (CCCS) 1 Aug 232023 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the CCC Intelligent Solutions' Second Quarter Fiscal 2023 Earnings Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

hand over to today, your like Warmington. Bill would the to conference speaker I ahead. go Please

we operator. you, us second results, the release review joining and close the today CCC's the of which issued financial following XXXX today. Thank quarter afternoon to Good thank market in press announced you for

CCC's are the Joining CCC's and me call on CEO; CFO. Chairman Ramamurthy, Githesh and Brian Herb,

the plans actual today are we and vary forward-looking make about that the may results to uncertainties statements of cause to subject implementation and results risks the plans the and The company's company's materially. on filed XXXX XX-K These risks are annual the discussed and our in Form the on with earnings the our releases Relations heading available report in SEC. Investor Risk Factors under website

Q&A CCC of a today the prior otherwise recording, other laws. are these consent of other Any Inc. or CCC comments Intelligent and States Holdings or same is that by violation reproduction retransmission, or without the and of the United use and copyrighted copyright follows profit Solutions for Further, prohibited

we've the in call we transcript third-party, a for of no while approved of responsibility by that transcript. take may the that inaccuracies appear this Additionally, publishing

in measures our available condition results on operations. of website. is of earnings is the discussion the financial information financial certain call today's as to company's defined and investors and these business trends to non-GAAP measures management to financial and Relations by the Please includes measures financial the relating SEC. note, A reconciliation release Investor believes on company GAAP useful available The non-GAAP non-GAAP our provide certain that regarding

over to the Thank you. Githesh. call And now, turn I'll

nature us delivered results, of pleased of all top another today. mission-critical the I'm of CCC bottom-line report you, Thank to our solutions. and Bill, to both and and you strong predictability quarter that reflecting for thanks joining

range. ahead ahead year-over-year EBITDA The second guidance up $XXX of million, was $XX also CCC's guidance and of total XXXX, Adjusted was our our of XX% revenue million, quarter range.

margin was EBITDA adjusted XX%. Our

On our highlight three themes today's underpin to call, that performance. I'd like

third, business The adoption first durable is CCC of CCC's and model; second solutions. is the growing innovation; the

durable First, our business model.

calls complexity, now auto being from As vehicle XX%, inflation, including issues, that than XXXX from earnings These by chain challenges have rising increasing headwinds, are counts significantly below and less being expectations. impacted levels. you supply consumer staffing compounded previous the media economy know and insurance shortages, reports, by is are and multiple pandemic claim rebounded the

in in we recently cycle-time days deep being Net cycle-times. result claim these I year number XXXX. repairable been by back open claims cycle-time, casualty of a closed. from a a increase in mean first the cumulative loss did discussed The being days trends and metric to a of a a into We has and automotive of significant total claim dive for

automotive more the with macro the claims for industry. of XXXX, X a days in year, per cycle-time than accelerating the pressures the days was US cumulative billion Back in staggering figure facing

that rose XXXX, days. more billion X than in However, to figure

economies human billion our that need in days the to than in X X lifespans. XX,XXX more insurance to operational This billion underscores put To P&C days is claims efficiency. address increase perspective,

We cloud-native insurance auto entire because of are together positioned network across the links help multisided dozens to solutions ecosystem. our uniquely companies with

OEMs. XX facilities, is XX,XXX network parts consisting of over unmatched and XXX over over XX,XXX than of with insurers top our more the of breadth customers repair suppliers, automotive The X,XXX XX

result being in faster. our across increases productive, platform claims By be ability these ultimately throughout can process, the companies to improve inefficiency and and the digitizing resolved claims which ecosystem, their connecting processes reduce communications

mobile claim Estimate-STP, phone, photos solutions how solution on example our our resolution. speed that from pre-populate great estimate can insurers level a qualified to using time in a AI-based a is for of estimating line repair complete seconds a

to days an by manually or over satisfaction even which can claim. and as a schedule well Today, a prepared insurer costing impact estimate $XXX as repair can the complete, adjuster customer negatively hours take

of the driving and/or reducing by the seconds XXX% the Estimate-STP's repair minutes typically involves impact cycle-time, contrast on also forms. the the part AI claims adjuster can the estimate expense plenty process. as It prepare multiple in models consumer and environmental of digitally, of or the well paper thereby administrative as

self-service the inspected Today, as XX% inspection claims channel, known X estimates facility inspected by in the are repair mobile to by the repair information consumers staff of field. and through MOI. approximately in the prepare is via industry XX% insurance are are in or of channels, Roughly the collected method phone XX% inspected but

application mobile inspection every initial able prepare an technology. of was groundbreaking to this be consumer's estimate, While from using advantage phone channel to want to a photos Estimate-STP's we take

we and end, AI-based are and Estimate-STP solution computer field repair into to that expand technology vision our inject channels. to working the facility Towards adjuster

across inspection these with appraisers assist improve Using efficiency to repair reduce technologies the and a cycle-time claims. set larger consumers, and much has field of operating in to estimate preparation technicians, potential

great APD with example decades-long and a customer our mission-critical Damage of our Physical clients Casualty with operations record We over adopt a of of CCC our this why Auto model only is believe was was more products durable our A insurer customers time. the our Solutions. not and of long-time cornerstone typically track a Solutions and helping or top a XX using business recent win

This our multiple agreed full month, Solutions, will suite the client platform. APD services to customer vendors including Estimate-STP. to transitioning of add be CCC Last from this

and for significant revenue we new implementation contributing expect APD great the largest country's of to with solution half We expand numerous This have relationship have our set integration the of begun start and insurers. ways a the this first XXXX. is to in the the opportunity planning example

I'd today you is second The to with innovation. point like discuss

CCC. Solutions, deliver and we portfolio can that solutions which will Casualty are to major for recent still increase good innings our investing be we and in believe investments of in are clients. we transformation proud in remain built to have the the value a the made industry's innovation network is we we this of A of While today, example we early in opportunity committed growth have years

predict recently involved rolled technology occupancy photos We physical a that accident-based in to vehicles. computer the an claims vehicle potential can injuries casualty AI-based a the out of on new vision of damaged for

links early use analyze appropriately the APD case of solutions the and and to process reserve using through process. more enables in effectively claims sets contracting capabilities AI casualty claims helping both insurers and efficiently claims identify our for risk, This insurers and guide multiple models,

example, have their our is capabilities, We of analysis efficiency of which of helping deployment the through to a our development total for of history we another improve are likely initial capability of our and clients combined AI casualty APD a clients that model competitive well. now bringing as repair, claims, represent operating loss and sustainable versus one early on basis, determination advantages. This example CCC's long

of model across real-time terms on millions In tens we of have hyper-local of estimates accident which over trillion $X a of development, basis historical annually. continuously updated is repair data,

deployment, insurance terms of our a of enabling solutions are many In economy, the seamless minimum our streams across deeply deployment already embedded model of we auto effort. in customers work the of AI of with

each roughly each We same well. being pays for The for and in physical payments in year, casualty. continue damage the with in the amount equal opportunity CCC large see to as market casualty revenue growth indemnity out insurance auto industry opportunity a

four from and Auto Yet Damage Physical APD that our our today, about APD of solutions, is from customers XX more casualty also revenue times only our than or casualty. use XXX

working. growing strategy opportunities our of base of our for that set growth early into is Delivering casualty one customer therefore, insurers. We're Casualty our APD our seeing solutions represents biggest points with proof

in we and example, us the APD for continue our ability to investments multiple growth QX, In casualty. to customers. added existing relationships our business, expanded to drive new combined side in the data integrate solutions our innovation, and with We of and believe with position on

point, For adoption I'd my our of like offering. highlight CCC final the solutions, parts third to and growing

is of growing believe currently and us. While CCC large faster represents only significantly overall, X% it parts we about for than is opportunity it a revenue,

five collision current year, multi-hundred-million on Last spent our annual existing the $XX we revenue. billion or believe more than business our for model, times about represents industry opportunity parts parts. parts on revenue a CCC dollar repair Based

about because parts percentage increase parts automotive for XX% integration, through is suppliers, and We ordered CCC facilities electronic believe CCC improve parts that volume ordering only time automation. efficiency solutions helped Today, that OEMs, electronically has and process insurers network. to repair opportunity operational of simplification, over our industry the the through

brings entire platform relevant parts into increase parties parts together procurement parts more visibility transparent. Our the and to buyers making to and faster pricing, process availability

and needs annual to Surprisingly, manually fax cycle-time. phone change calls, of days emblematic are still a X billion by prone what to inefficient, obviously machines and reduce which is error the slow, of of meaningful portion parts ordered

cycle-time managing and a is time and a In regular are efficiency. of part operating availability occurrence, where supply world the selection critical chain supply knowing total at disruptions

and sold for car labor parts can satisfaction, suppliers. cycle-times and facilities lower rental of customer shop utilization Longer repair for the and costs mean high lower lower volume part

This parts extension participation quarter, suppliers. we the OEMs two a network one further grew by aftermarket expanding multiyear our leading with leading automotive parts signing and of of the

years our will growing parts on to with pleased the procurement the are confident parts our scaling is portion in come. how of platform We are a and network that electronically take industry place

on we excited for conclude second are in strategic and our ability of we continue me half XXXX financial year. what planned are of to what the confident our And we we first the saying that proud deliver have by Let to half of the achieved about objectives. remain in and

turn will detail. I through walk results to Brian, will in our over more call the now who you

Thanks Githesh.

by are our also Githesh balance efficient, enables of operational of innovation scalable economic solutions of financial that to our key model highlighted, and seeing us our throughout and in business is in and efficiency cycles. terms we innovation investment adoption customers. A our across highly As component drive business predictable, durable strong momentum

now million, I'd year and like full to provide Total and quarter As prior period. was results then revenue for the the review second quarter third up our from we second XX% XXXX for turn XXXX. the year $XXX.X quarter to guidance numbers,

our revenue of packages, points ongoing including upsell, solutions solutions, growth of casualty. the upsell of and momentum seven base, shop by QX our of cross-sell, repair was client the digital and adoption in across Approximately in adoption continued driven

than and of and emerging in to from repair An QX suppliers. incremental growth from diagnostics saw I parts of our logos, more growth our points mostly new point want one mainly facilities three that Estimate-STP. came solutions, highlight we with also

key Now, metrics. our turning to

the captures from GDR, retention, Software base of or the client amount period. year gross prior revenue to our compared dollar retained

last all of In provide network. accrued significant the our strong we This benefits is from our XXXX, with XX%. reflects and value the GDR customers GDR are CCC and believe software We broader to consistent QX was that with XXXX. quarter participating in the

and to is model. resilient core revenue GDR tenet Software our a predictable

our in Software the year XXX% client customers movements the period last upsell from our QX was auto net from and software well base. quarter. damage amount NDR dollar of physical This cross-sell retention, captures XXXX, In modestly to is or prior as as existing NDR, XXX%. compared volume up

statement to in Now, I'll move income detail. the more

unless noted, reconciliation reminder, a a non-GAAP. GAAP We provided release. to all our metrics are press As non-GAAP otherwise in of

in on quarter by reflects operating released market, XXXX recently projects profit in XX%, flat quarter gross the offset gross solutions the is profit associated revenue, margin the incremental capitalized and to gross higher the from of stages adjusted quarter. XX% up while $XXX flat from second early leverage scaling. primarily Adjusted these year-over-year the emerging last revenue million. depreciation still The was the profit from was with margin, Adjusted slightly expense

adjusted to of deliver Overall, ability feel and the profit and against leverage target gross scalability model of operating good XX%. the the we our long-term about our business

million, expenses, half XX% of close highlighted that last Expense non-recurring of of by operating terms impact last growth capacity in also headcount the IT was year to costs month migration included $XX.X additions XX% we in up expense that In QX the quarter. XXXX year-over-year. quarter reflects The year-over-year. adjusted staff second grew the the

for margin year-over-year EBITDA was was XX%. EBITDA up quarter XX% $XX.X Adjusted the adjusted million, and

net end Now, equivalents the We the cash debt. times in and our cash approximately quarter million sheet At $XXX and balance the adjusted was quarter, EBITDA. leverage and of to $XXX the turning ended X.X flow. of cash with million

compared million was QX prior $XX $XX adjusted Unlevered Free flow cash in million EBITDA. year XX% of in our $XX the or free cash to about in the flow quarter million was period.

phasing bonus be seasonality, into continue our would While mid-XX% we QX, the adjusted low EBITDA based conversion one-time it time. average expect free cash to of our of EBITDA cash the to can items, for in free adjusted Normalized to the over on level flow of payment year-to-date XX%. vary quarter-to-quarter to out unlevered or flow

finish with XXXX. like I'd to guidance with beginning QX

of We $XXX expect growth. million, represents to million total revenue $XXX X% year-over-year X% which to

adjusted $XX XX% margin to EBITDA to which of million million, XX% We $XX expect represents adjusted a in EBITDA QX.

For million growth. $XXX the year-over-year expect X% we full million, year revenue represents $XXX XXXX, of to which

the to EBITDA $XXX $XXX adjusted margin EBITDA adjusted represents a XX% of expect at million, which We million midpoint.

year to the Two in keep mind quarter you about think full points third guidance. and as

ability feel is position year. first we our that The the good for to about our deliver

our We've $X the durable our million on good to to and X% This revenue guidance subscription business X% revenue our that for raised by our provides X% the growth guidance based visibility driven the from XXXX revenue of momentum from moved for long-term has range year. model full contracts.

second the confidence strong and guidance. we're point The revenue the operating we second second the seeing and EBITDA XX% adjusted also that and in in to leverage strength trends of lapping in we first margins business the incremental last our from on headcount relationship XXXX the Overall, up ramp. in half the step renewals our half expect is of benefit the year's to as XX% reinforces from underlying expansion half

The combination AI our process. and help customers improving position broad business to costs model, and throughout administrative the consumer the reduced the set advanced claim durable in our insurance in while network economy, cycle-times interconnected experience us puts capabilities, of a solution P&C

profitability across digitization the to positioned long-term. continues and well economy and to accelerate, in and for need in both durable drive insurance is CCC near growth the The P&C revenue

confident XX% adjusted against X% organic of deliver the are our expanding target to ability We long-term revenue to and into EBITDA growth our mid-XXs. margins in

continue will both on strategic and we our priorities, shareholders. As we customers significant we value execute for believe our generate our to

Thank you. now we're With questions. that, to take ready operator,

we'll this you. the time, be Thank question-and-answer Instructions] conducting session. [Operator At

Our Evercore from the of Materne comes Kirk first ISI. of question line

line is Your open. now

a opportunity more for and was bit and thanks could Yes, outside nice you I self-service. a about congrats Estimate-STP very on much Githesh, if quarter. little mobile wondering the talk

Can a through talk TAM how other your available or seem thinking about dramatically channels TAM? that of other can the would if I to attach XX% pretty STP. you That that sort or just now guys market the either go changes only claims rate you maybe think before was of and were eligible. bit you about on are to thoughts the little expand

Thanks Yes, the question. sure. for

got to and we've continuing roll clients out Estimate-STP, foremost, mobile and our different and to continuing adopt. kind more are adopt First continue move, states clients to of

And it's $X just our mentioned we total less Estimate-STP still a still the that little than over volume, as while in reminder, past of a have billion, our total X% volume.

want just understand that to So, sure I part. you make

been capability out with Second, staff will insurance we capability, this who and have also been this adjusters testing need terrific. the receptivity has

an staff. does it a expand additional XX% So, -- XX% that's insurance the TAM to

like. and a to consumers get look provides That the facility only not real to would from real the -- get what As photos of we've been also this in inspections, for a which seeing we continue would and some repair some all we with with ability facilities, but capability sense testing repair cost get repair repair facilities, benefits an are the for efficiencies. work estimate is XX% what

but a a stages does TAM early processing straight-through for on is and use Estimate-STP reminder much our the second about, expand cases we talked part two also broader it us. of very that So, solution

then super about that's Great, And just correctly. Brian, we it so helpful. think

I million As remain we of like range? should $XXX -- just retention, on the we retention. into guide to of expecting that how the around go year, But -- expecting Thanks. terms front? of be a can know we back in don't any we net it Should be sorry, this specifically. you should dollar half net talk changes Kind you

absolutely. Yes. Yes,

this $XXX the momentum of quarter. We $XXX been feel and million $XXX did We we've position. $XXX kind XXX did we steady-state If in QX. you did on million progress in look last million million Obviously, the the and good a overall historically, around quarter. is We business.

move think be I that but million, about will So, around in that's it's $XXX $XXX quarter-to-quarter, we how a going range, to think million. bit It it.

more upsell we growth medium like we cross-sell but as as will longer will Certainly, those XX%, and that's step total term and term, towards move be rates. new to growth think that we we have go longer logos XX% of highlighted

quarter. on Congrats Great. the Thank you all.

Thank you.

you. Thank

Dylan from comes question the line next of William Blair. Our of Becker

line Your now open. is

results Hey theme. guys. on the Maybe on kind AI Congrats starting the here. of

about casualty talked You detection capabilities.

with You announced Verisk fraud detection. partnership for the

wonder And we about that workflows think change the potential? automation core to I carriers. underwriting unlocking kind entirely you digitizing process it How maybe potential how existing shares effectively, Githesh, and the of also maybe should premiums? and AI for for capabilities, new think decisioning is about of new but

for right? insurance the insurance, ratio -- the challenging. of auto ratio with over is does it pretty a a personal P&C XXX, you especially avenues open at and happened look had combined has -- answer lot a short capabilities, XXXX, In P&C which that, what The example, combined of long-term, if been other of had XXX, and the auto

so use And very are there cases deliberately we will other now. long-term, the on think we over do be cases, right but those not use focused

For example, -- that the long-term. not But and when at car, to to we're look around take the when on the to the you vehicle applicable over today. damage the you the insure able what fraud things, vehicle, car, pictures but be to a that's other ability on underwrite is AI focused checks absolutely get

talked The time. EV sense. on frequency that billion that brings over about even just in to cumulative then don't I going days past, metric, I complexity I of it Okay, that maybe, mean, which the back fairly and kind think maybe X perception makes it's mind-blowing. And severity. We've touching down know,

point some to I the early stats of think the there. contrary

for address higher? billion this room Thanks. going seem you're and because, the repair doesn't number only like it then positioning growing billion, not X that it again, X there's continue trending frequency the work but to to EVs, mix to facilities of actually of line how guess trend about severity pertains as I of to thinking

Yes. Sure.

frequency of coming bit, what happened frequency repair first all, been So, has levels, is to up below has from levels. XX% XXXX a below complexity still probably little XXXX But a has of the but standpoint, increased X% significantly. that

me couple point. to you Let illustrate a stats of this give

at you repair in of in the the two came the if costs So, increase. between accounted parts vehicle. in amount really XX% repair for the vehicle increase hours and the of That categories; of look and the of number XX% XXXX labor XXXX costs, from

and really cost we XXXX, XXXX, per XXXX, in In to increase XXXX, But a repair XX.X repair in the that fact increased underlying So, repair was somewhat. saw we XX.X%, cost had in this XX.X saw XX.X%. has a of of abated increase we and collision that parts. that parts had

in going words, in. parts timeframe, every you coming other also got in, just So, collision repair, four-year in coming over more you've every repair with specialized inflation more labor XX% that and have

labor from to about So, hours have hours. little hours a over XX XX gone

you complexity complexity still XX%, almost things, we've these take in, is when talked repairs, all of EVs. growing about, the of more are is XX%-plus So, EVs two factors these the what this growing with see expensive still of X% it's are going to of repair. EV now even our platform, And decent of a since sales only EV sales. through around very a -- volume though claims, X% we

supply to one help manage. which help really need part are We it from to our we billion chain we due growing to days complexity really that and billion complexity of that and see see we're of X X going trying hence, growing the this is also every address is fundamental single is normalize. -- to days of starting But customers underneath all what issues, number this to

Got it. you. Thank

Thank you.

Thank you.

next the Gabriela Borges from Goldman line from Our Sachs. question of comes

Your is now open. line

durability reflective quarter, as of model surprised we Githesh talk has the [indiscernible] and consistency every Good you what the that I plan? the the are growth year-to-date, there more technology you. of you? has to internal you the Where and bit adoption upside? afternoon. business so reflection Thank to gone Is seeing year your the be in that how may about Just Brian, the relative downside? surprise things little of a a you anything on off to

fundamentally having take Brian, through Maybe, that many maybe, not means tends fairly with long that a and our the first, that to the that able platform, that for Gabriela, data we're is Part surprises seeing we're done I'll to have the of to that. add too either terms in many trends things able business we've you which and Yes. can done time what the technology or comes of to see we're visibility of see of that.

are would technology car that the are efficiency that to we is is insurers, the to of said, shortage labor, sense the more at one our seeing, they the it talk consistently is for macro solve level, improve this to providers, we say, entire in general leaning of and across I With economy, OEMs, we one that were past thing aggressively when than clients whether parts repairers, a to in seeing across board. use companies,

necessarily month-to-month process and a quarter-to-quarter, for or being acceptance customer time, doesn't are much Brian, tools I a anything more seeing that. experience. to change we seen having efficiencies differentiated don't it know, but or Again, this if of deploy things to able add long on a you week-to-week want to deliver to

how it them. covered of highlight a -- macro, said, think and and clients clearly, we're really well. a a the we're you've also That at engagement I feedback just it's the -- would positive in. operating with overall, engaged good have marketplace of from we dynamic I client there's lot just lot No,

that's marketplace. our in business think another important happening I So, just with a that's thing dynamic

the NRR. about follow-up in that volumes I My about casualty Casualty business. on basis? you to we one a And Good think volumes casualty any believe How impacting last hear. volatility should is about talked the quarter-to-quarter on quarter, on metric? point

Thank you. gain you seeing positions of love as have momentum casualty, would the terms from what space? in front competitiveness two in one or good to incumbents in that hear will And you're

casualty, of came expectations the in the revenue with point. performed happy the well. performance I from around say the with -- Githesh line Yes, QX would maybe competitive a let just We're overall talk on I'll casualty. and performance,

where second ahead in the feel and and half QX. We're good across . of what's good us happy with we on on of strength, We seeing we the the the momentum ongoing year. feel with casualty we're landed so that

clarification. Casualty a in Gabriela, we and point We calculation, about point QX, one Maybe was there. to total in When not of talked a growth clarity. little NDR overperformance the the casualty just QX, impact in in in it of so it is our point small mechanical QX. referenced small just reference as

the question, second can in physical we it of Gabriela, of auto underestimate part And your or others damage terms whether incredible regarding never what the in what differentiation have business in repair with innovation we of the focusing of doing. Yes, side results on facility deliver. is do we our are business the history side insurers of really and

And we've so talked us. to I work examples several some think are including the casualty our over done much the last of we that helping about AI of really differentiate the those years to platform earlier, position

of and in. many paper processing are a system lot coming that parts still of in remember, the place, coming still the handoffs and bills manual lot also other of where And manual taking is things a

as lot So, there a there's opportunity of just well.

Thanks.

Gabriela. you, Thank

Thank you.

Kalia Our question the Saket of Barclays. line next comes of from

line Your open. now is

within you casualty the make customer, think XX. there Does is, are great. guys, with maybe that the you Githesh, business? discussions them do just to the from move But here. And about to you've APD the majority Hey of with think the win I because top to my here start like CCC? if wondering questions in what see this could got the talk quarter. Okay, prompted other Great was I maybe sense? you. already to for just the thanks new for opportunities your cross-sell taking question

absolutely. Yes,

one the start us only customer the right? clarify thing casualty, said for not This said only on was we using was the that using me top with, CCC the XX. auto Let for damage. but We've using was was customer this -- to that physical in --

customer the for uses across this auto a and customers. so top -- for customer the CCC smaller largest every top in casualty casualty, other physical -- much our So, have customer representing occasionally damage we XX base

also clear? full customer, will auto of now suite only damage. is So, So, casualty but this will customer physical not our -- that use now

think process a benefits. evaluation I of I were, where what through the they and they say, -- would saw, handful

First network given our deliver depth of like. widest and parts foremost, and performance repair the of our differentiated the providers, have and network to and ability facilities the breadth we

would The these for very get single components platform, delivered. that I on Second, with connected in together areas of we in example, where, innovation put unique number innovation, and you of can have is a say, that all place. Estimate-STP a

I you for and would have if have references industry-leading, other Net nothing not also you that been Promoter when customers the say is having references plus, which equals the Score itself for clients. third, using last, And who least, great a XX and platform lends fantastic from is of to what do your

Absolutely. big again this just how you, of and year's whether half be to Congrats XXXX. maybe when expecting to about we just for topic, know this on in to the increase win. Brian, could Absolutely. were you it's year? more the talk at it's the to can this maybe I first all this on revenue contract meaningfully stay contributing not until going this contribute to But guide?

would Hi pipeline, expect yes, Saket, in for while. this you how problem. Yes, you? no deal as the has been a are So,

had we in. was coming that this visibility So,

revenue contribute We deal. expecting year to this are this any not on

the update guide of this coming reflects on none deal So, in. the

to into We expect year. it to start contribute next

and We don't going our going for to guide it's guide, individual reiterate the specific feel as to talk next of about deal. specific continuing are but just the this XX say the to that the help long-term economics would to of next We're year. year. seven it's give part contribute to I guidance, will we -- we any certainly not guide into

guys. again, Congrats Awesome.

Thank you.

Thank you.

of of Michael Funk the comes of from America. question Bank Our next line

Your line is now open.

guys. the you questions thank Yes, for

revenue XX%. growth longer-term just one, the on First of to target X%

you You and in you. cross-sell, at looking one point But this growth incremental more to that thank logos, -- upsell, points said the one for for three so new quarter, provided than you gave some on seven points contributing sorry, color the time, drivers that. solutions point emerging

guess, if about about thinking have there, that not, the TAM longer growth I why? larger increasing you had emerging solutions, Estimate-STP, term Just And the discussions potential target?

to Yes, Yes, scale. It's do happy a as we we set so, seven over one can we at it. guide, to feel that out the Brian. comfortable long-term and time that take that XX, deliver

and have these play solutions within solutions highlighting contribute been emerging to how into emerging they'll guide. We do the We the expect guide. the

confidence so over guidance we And can gives us deliver time. the it that

it XX% we've framed be of is over growth. we time, way the will said, upsell cross-sell, The total

of will XX%. XX% half be make growth will of solutions logos New total up and these the newer that the about emerging

from the of So, points think to emerging about four growth be coming will solutions. that, three

broad have to That win as said, set grow many we the and certainly solutions of think opportunities business. and about a our to business

the we as think again, over about and this how So, the of we deliver time. it our ability to guide confidence about really think

color we Thank you details through us on could. ramp Estimate-STP and How deploying thinking rolling should Last AI-related one And the for deployment? any some color. Can give you revenue quarter, how in Sure. more think a that about you're out fashion. for about the Estimate-STP deliberate on if very gave for potential scaling you I more other deployment road and map products? and

of are the have channel, we at thing interesting mobile customers that find One the X% is you are at using that and Sure. the on and Estimate-STP have really using XX%-plus customers of time. when we capability time, capability who and who look that might that self-service we AI

at there's wide dimensions have as we a are -- seeing different customers So different needs, business really dimensions. and two models two range. And different

goes each these week by. adopting customers and month more One, each solutions as

states. the their some are one or XX that tuning, way advantage these have the states, a state testing adopted one some customers two in or customers or start all states take usually of They'll at to capabilities. states, two and customers group of Second, are and to processes are up it

And very sure of to continues to that solid. period to a an delivered all of and accuracy, of experiences, a be been over the have important XX we us. lot the to the maintaining thoughtful make is that early industry-leading industry long rock plus super having time, of very NPS And very, deliberate products

large feel about to we think clients good -- and as we so And more it. use continue the more first how

of continue this when which to in that sure then we've And that guide. our that would So, to XX% this of give all answer, guide you will think X% give move. is Brian you we included we I'm

time Great. Thank questions. and the you the for both

welcome. You're

Thank you.

from Our Radke the Citi. of Tyler next question of comes line

now is open. line Your

side wanted Yes, I thank the evening. parts of about to you you the business. and ask good

business. You faster talked the how about overall it's than significantly growing CCC

to the understand million potential seeing. talk us referenced? about that get plus you're help to some of products Just Is mostly the pathway new opportunities of you existing $XXX kind today? Or kind

of inflation you lot in around on being bit maybe little expand that a but opportunity more just how a out. potential playing talk catalysts, see supply chains Obviously,

and billion to you that that an number has from $XX $XX is over the thing When billion. right? parts the just XX.X parts four of in heard I'll That's probably about sorry, Sure at billion billion repair you $XX you the that give macro standpoint, and ordered number quick dollars ordered. earlier Tyler. XX.X by years. parts the somewhere are stat a look $XX a of collision it's update, other -- are between about of gone from the And US, industry the last from that

parts is are of number add the chain other increasing. Supply especially increasing, and EVs things. you as complexity So,

understanding area of that know want say, complex an for manage in and Georgia, right those day, And and so is use, cycle-time, geography, in to geography, about availability so increasingly it. cycle-time become particular everyone have impact decisions I make particular you parts that to on to that decisions reduce on can in need as trying if the that vehicle which parts a in local I availability Macon, let's the therefore, am parts to hyper I really

So, parts we of CCC GMV about adoption, we XX% through XX% at platform. the think are going roughly

We we're is with have the with. And just are providers. that seeing OEM with aftermarket CCC car on OEMs we specific are including one a what extended platform. providers, These broad contract providers, network specific companies, that of a running parts programs pretty the

At into on deployment the and transparency the our are customers very same of keen parts also time, insurance having parts.

a providers, the platform really and that of across So, it's providing between transparency insurers companies, parts repairers combination board. one car common

last saying or capacity. rethinking but our the year, remember, when hence, we development rebuilding So, to we solution we did few do call if it -- a you parts we've us quarters what XX% continuing of And extensions. added does involve ago, kept a couple radically did earnings not

our and operation. in number deployed parts including a expanding was areas, capacity of development That enhancing

strategy, more So, it require from in does a adoption but will and our change approach customers. not increasing our radical come from

Brian. just point. add to And It's Tyler, the I'd

sizing Githesh $XX get math. you where Just as about XX% market so so out, about the your opportunity. running about X% of revenues, the say, said, talked if We those two and being parts on of platform, the million, our through just that's sizing you extrapolate

framing. helpful That's

about and the conversations just you've your question, to post For just user momentum customer some of conference. a you seen, wanted highlights ask follow-up I

particularly relates a it talked the How AI. conversations of pipeline your lot post tracking? or you is Thank customers growth observed as with you. of industry, event? activity in future You terms kind the Anything generative deal to of that about

Yes.

not generative would for channel have for mentioned say other a that change repair AI capability for that I the other from there's we channels, in self-service expanded use than, to call, been of expanded as substantial I staff, we example, facilities, So, and casualty. the to

remains the would had the a conversations and but usage, deployment So, and to around of when the across why, conference, of tons since high, be the terms like. of lot how and we've I in and tend level the not very board, say, conversations interest

you. Thank

Thank you, Tyler.

you. Thank

[Indiscernible] comes the line of of next Jeremy Our Jefferies. from question

line Your now is open.

taking is questions. This guys. for Samana. Jeremy Samad Hey Thanks for on the

So, first, another on parts. question

the are customer uplift to a announced parts maybe I of recently module? guys you about kind chooses the of like you And that? can So, selected what guess, promote Toyota CCC economics the promo is like what for that US to that dealerships. marketing CCC add talk when win

on any or all, don't any economics first customer. -- customer one the from of comment We particular Sure. we

And so sense. a in kind I'll you give macro of

are OEMs actually for more parts by they is and program facilities streamlined platform. packages So, be make in that provide how adopted we that insurance, a they capabilities so are customers simpler might And parts together. repair buying on who that have they what pricing, put and our the of their do number terms of can

way, announcement, well. one are all formal where work a some work OEMs in we with happen others with as but several we So, that essentially, actually actually to we there shape is or form. make And Toyota

good to should investment we of think guess develop mentioned, that further got Okay, I how someone point products. about whether to or growth see else from it's to to And them these required, take market? maybe the it. then that's of incremental kind products emerging

with Yes, would back, I see is four competitive the say so roll started the AI and this capacity. quarters, the quarters, what roll we clock ago generative So, with we more advantages I would to right? we network, four you quarters say, saw if if our increasing development and back start unique XX% the have with that about we platform, starting some clock spend you four added

speed, people the very of lot that to productively. a contributing now beauty And are those of is up

is capability in casualty. really in for of this in range so areas, And broader in a STP, whole being diagnostics, example, subrogation, applied in

So, we're ability to to on come really starting see stream. that

like. And by look capability good the and of the of used have. about year, not kind that and the releases to because to if tested need and at these customers goal make add we And feel the digest you and the is we sure second being half very capacity capacity are we now

questions. Got it. taking my Thanks for

Welcome.

Thank you.

of line the CJS Moore of Securities. from comes question Chris next Our

open. now line Your is

questions. guys. for Hey taking Thanks our

on how adjuster computer remarks come about times talk CCC a bit to actually the maybe soon products into mentioned So, you it a this more your works touched you expanding vision case little technology prepared the But there? use talked that about and Estimate-STP's market how repair in for field few would channels. Githesh, Can you facility, had the AI-based you and also.

Sure. testing say those I we are would in markets. in of all

would a be package that's to work areas. fair buying. inside this essentially insurance of component that these that, where a staff customers And way -- in come So, for be or a added market insurance is components are the are. it is of We've amount we done would to adjusters, that

And it then is sorted and huge side, fundamentally, but side what excited the But that one model, staff on repair shortage in packages. fully we a out facility of haven't some repair exactly, included a of estimators the on there's facility be the we're of revenue though, more from repair about would our business.

answer we questions, probably schedule generate take a your it. And integrated are of the customers really benefits, excited what Chris? downstream it's to ability how do and -- up we deployment estimate, lot can is AI take provides at look say, standpoint. end so hey, consumer photos It super have and car and also to a I I and someone it from that CCC deep predictive the And platform. see inside that's can capacity this for a so Does about the it

others Yes, perfect. It's leave it Yes. guys. were Got Thank I will much. does. it. my very of Thanks it you No, most answered. there.

Thank All right. you.

Thank you.

the comes line question next Prestopino from Barrington of Research. Our Gary of

now Your line is open.

more question from parts? efficient afternoon the better the Hey for electronic using a parts or facilities Brian. insurance on an repair the demanding of business. mousetrap who good drives Githesh parts having you're ordering -- to of just and a done A come be means procurement in adoption the that order kind it Does What that of pace? companies

it's I would repair say -- our good I fundamentally, from to hear say from you customers. would Gary.

parts. the really facilities it's are ordering the repair So, who

insurance vehicle, not parts estimate. the process generated by that, companies the facilities the repair in It's have order the a remember; of to do list You is parts. repairing

One, the your or because your from have out -- CCC hey, click, I integrated go say, CCC dictating you of Again, -- list we're specific are an when parts the click, XX.X can of And So, choose One, parts need. then it's into can coming those supplier. you mechanisms. click, not estimate any these provider, you

part process the the accuracy invoice the The what their is the getting They're into up participants. from repair we're doing. electronic facility system. repair the things doing providers, the that we're favorite facility, provider, selection, entire the streamlining their and and Those getting is their into reconciling right the parts of are parts, setting making

big to facility a your benefits to very this. mix what having answer the is market solution, clean, simple repair question is guess, provides drives I So, which easy-to-use really

XX% this artificial a takes say, need mean, entities increase hit a sensor value the the car to front shops the you I to as the if a be I've and to the done ability recommend quarter So, lot order? there's system or trying a say, intelligence, it say, going may in, repair something? the total would been in of the right hey, a electronically you're the you panel, Can need on timing panel, quarter or for to that on front have automatically your of phone. right sensor of the but this, Does that -- -- with

Well, to again, value the not total focus increase our order. is of the

Our as focus possible. to get is accurate as it

how vehicle. millions like, So, we degree, because actually we like, depth what at vehicle millions literally damage, particular do level and and this to XD photos, of look mapping also and can estimates of this with accurately. have of have and of actually we And the front can the take deep hundreds this we parts and of tell prior hit of so hundreds pictures say, the the the pretty we is -- a that and right predict we lot of is and accidents damage

And $X.XX missing a clip. oftentimes, there are parts, minor might you be

and of that total out repair You delay $X,XXX might of be missing by six might $X which be repair, days. the a clips, a could

So, -- getting have some a completeness of that more big difference. can of actually

what that talked deployed Estimate-STP that's deploy or that. not right what is I being repair facility about, the road able to we That now, with testing down customers. capability deployed. are to we're our is But So, do

Okay. Thank you.

Gary. Thanks

Thank you.

Our Arvind next Sandler. question comes Piper from Ramnani of

Your line is now open.

financial like those to start starting it two Or probably to or improving improvement? on we already before year of asked, kind material been of of follow-up are color questions you out on Hey and your Is the or From the your my margins? thanks. see but using something kind have benefits? AI areas some is it. a you're that that's still gave want of growth I of like you model where Most to of some some see perspective, revenue a

that Brian, do want one? take to you

about quarter. growth so It's in Where Arvind. and an getting AI solutions highlighted AI growth. example that's rolled one being We of of to Hi it's Estimate-STP in example And absolutely. out. we've where Estimate-STP point we're used and talked of the solutions. an today, one it, is seeing being production how emerging used contributed generating contributing our in emerging revenue Yes, is

we're that where -- example So, that's in is by revenue. clients one generating used driving being out, rolled

another example be prepared well When his that we like as think embedded of AI AI or the and a in Githesh revenue-generating casualty generation. will revenue Again, will about examples, remarks. area solution have be in using other subrogation AI products referenced other the

So, be be revenue for driver and really revenue will solution will the forward. the rollout AI going generation

rates know starting bill level? hard kind at that quantify, see of your Great. win you are mean I sort direct sort that. indirect of are And of your to just a I keep driving particular contributors. fully conversion if rates sort that even I may solutions -- can or on Is these there to qualitatively your informs that These of to kind rates up be follow an those some of of or kind but benefits contributor sort rates of conversions? ability innovative of are

customers with look wide a just to that period point, is make pretty base on very I at which our a fronts. we we've XX quarters, our existing just macro work quarters time, added we've XX solutions customer the public, been variety I'll one back of Yes, of If right? for long

million run about Revenue XXX gone in which XX million, about about of run $XXX to $XXX-plus has from quarters rate to plus is increased from last increase -- rate million. of in a a EBITDA run rate $XXX has run the an of by about XXX rate.

components process solution from facility, with repair for different solutions, of or process not new fact providers. about components any for parts of to any for insurance different that ROI the particular the specific delivered come the we've different components this innovations has for and but of very the modeling, And products, particular one process

stage, at very that [Indiscernible], have and and So, things what first a seeing things portfolio we're we really a in unique, it's very, kind new like of that are we're of fundamentally mix this lot a of its and and doing are engagement.

numbers, you've give XX even a that seen has to other solutions hard we customers. our long it's just the come that through answer products particularly and quantified than Arvind, new in primarily introducing benefits public our growth to record, track quarters So, have that deliver

you. Thank Perfect.

am At time, I you. Thank no seeing questions. further this

would like I now remarks. to So, this back closing time, it turn management for at to

continues us you and our in strategic keep business for our come while we and Well, deliver today. objectives ability our all to solutions. also model in confident financial The remain thank our through, investing and of joining future durability customers helping to on

This to in first returning to and thank, important, week public that the of this tremendous place And customers, a trust their I'd markets, day. our for two-year CCC take a journey marks most and every our they to like milestone foremost, our public single anniversary as very interesting opportunity company.

and to when forward thank quarter trust of report Thank want And so tremendous I'd CCC. last again continuing talking trust for the we to least, ongoing team what not for November course, to thank We like in I you also CCC to our dedication. look but our third in early much execution results. shareholders for we you to your do.

in conclude today's you participation conference. Thank your the does for This program.

You may now disconnect.